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National Foods Limited posts 22% profit growth in 1HFY24, declares Rs1.5 dividend

National Foods Limited posts 22% profit growth in 1HFY24
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February 27, 2024 (MLN): National Foods Limited (PSX: NATF) experienced a rise of 22.06% YoY in its consolidated profits in 1HFY24, earning a profit after tax of Rs1.5 billion [EPS: Rs4.36], compared to a profit of Rs1.23bn [EPS: Rs4.08] in the same period last year (SPLY).

Along with the results, the company announced an interim cash dividend of Rs1.5 per share.

Going by the results, the company's top line grew by 50.80% YoY to Rs40.13bn as compared to Rs26.61bn in SPLY.

The cost of sales also rose by 51.02% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 50.21% YoY to Rs11.04bn in 1HFY24.

The gross margins, however, ticked down slightly to 27.51% as compared to 27.61% in SPLY.

During the period under review, other income fell by 56.22% YoY to stand at Rs97.22m in 1HFY24 as compared to Rs222.09m in SPLY.

On the expense side, the company observed a rise in selling and distribution costs by 42.37% YoY while other expenses fell 55.41% YoY to clock in at Rs5.92bn and Rs41.06m respectively during the review period.

The company’s finance cost surged 2.43x YoY and stood at Rs1.09bn as compared to Rs448.51m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs634.47m against the Rs498.85m paid in the corresponding period of last year, depicting an increase of 27.19% YoY.

Consolidated (un-audited) Financial Results for half year ended December 31, 2023 (Rupees in '000)
  Dec 23 Dec 22 % Change
Sales 40,129,537 26,611,726 50.80%
Cost of sales (29,091,104) (19,263,254) 51.02%
Gross Profit 11,038,433 7,348,472 50.21%
Selling and distribution costs (5,919,921) (4,158,192) 42.37%
Impairment loss on trade debts (20,898)
Administrative expenses (1,930,104) (1,144,337) 68.67%
Other Income 97,223 222,089 -56.22%
Other Expenses (41,056) (92,071) -55.41%
Finance Cost (1,089,529) (448,511) 142.92%
Profit before taxation 2,134,148 1,727,450 23.54%
Taxation (634,473) (498,852) 27.19%
Net profit for the period 1,499,675 1,228,598 22.06%
Basic earnings/ (loss) per share  4.36 4.08

Amount in thousand except for EPS

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Posted on: 2024-02-27T12:23:18+05:00